ENTREPRENEURSHIP AND

INNOVATIONClass 1 – Introductions, formalities, and a quick overview

Javier A. Rodríguez-Camacho, Ph.D.

Pontificia Universidad Javeriana in Bogotá, I-2019

The 5 Ws

Javier A. Rodríguez-Camacho, Ph.D.

Mondays, 6:00 pm to 7:30 pm & 7:45 to 9:00 pm

Room SA067-P710

Paula Urrego (T.A. – urregopaula@javeriana.edu.co)

rojavier@javeriana.edu.co

http://jrodriguez6.weebly.com/teaching.html

What do you know about this course?

Why did you take it?

The course in a nutshell

A 12-week venture-creation simulation.

Find or create a business opportunity

Generate and deliver value

Capture it through a start-up type organization.

The only way to learn about entrepreneurship is being an

entrepreneur.

Entrepreneurship is only possible in teams.

You really have to want it.

The course in a nutshell

You must form a team (3 to 4 members)

Develop an entrepreneurship project to be assessed in different stages

Two presentations (pitching sessions + document)

An open-air event (demo day – Feria del Emprendimiento)

The Learning Plan

You will have support from several experts, outside of the class

Finance, Marketing, Pitching, etc.

Can my project be social or

sustainable?

Absolutely, but it is still a venture

Social innovation

Sustainable entrepreneurship

Indeed, sustainability must be a concern even if you work on a

“traditional” venture

Try to solve small problems you know well

That’s your advantage!

Am I interested in making a

living doing what others do?How do they do it?

Can I do it differently?

Is it worthwile, profitable?

Business Model

Value Proposition

Validation

Technical

Managerial FinancialBusiness

Model

Am I interested in making a

living doing what others do?Do I know how to solve any problem?

Whose problem?

Is my solution feasible, unique?

Value Proposition

Customer Segmentation

Validation

Technical

Managerial FinancialBusiness

Model

Thus, in this class you will learn what a

business model is

Why it is useful

How to read, understand and present one

Business Plan

How to prepare one that works!

The business plan is just a learning

toolYou should focus on making your idea a reality.

How do I sell this?There are two caveats, though.

This is an entrepreneurship class

Make a new/crazy idea a reality

This is an innovation class

You have to think outside the box

How will we achieve that?

The Formalities

The Program

https://jrodriguez6.weebly.com/uploads/6/1/5/6/61560535/programa_innovati

on_2019_-_ii-1930_.pdf

What is expected of you?

Originality

Honesty

Respect

Punctuality

Full commitment

Constant engagement in the class

Proactive attitude

Consistency in effort

Take the most out of the class!

Compliance with the university norms

Let me tell you three little secrets

Plagiarism = death.

I love rewarding effort.

Extra points are extra.

Evaluation activities

Final project to be developed in groups (55%)

Two preliminary evaluations (15% each)

Public presentation to an external evaluating committee (25%)

Written exams (25%)

A partial and a final (10% and 15% respectively)

Assignments (10%)

Individual and team work

Reading controls, homeworks, etc.

Initial pitch (5%)

Class activities (10%)

Presentations, participation in general, volunteering.

What makes this entrepreneurship

program unique?

Some Important Dates

21/07 : Deadline for team formation

17/08 : First Presentation (Primera Entrega)

24/08 : Partial Exam

21/10 : Second Presentation (Segunda Entrega)

06/11 : Feria del Emprendimiento

09/11 : Third Presentation (If the group did not make it to Feria)

11/11 : Final Exam

What to do with all these classes?

We have four holidays:

19/08, 14/10, 4/11, 11/11

Some days I will be out because of conferences:

22/07, 12/08, 23/09 (Maybe)

We will re-schedule:

August 3 for July 22 (Sat), August 17 for August 12 (Sat), August 24 forAugust 19 (Sat), November 11 is a takehome exam

Other alternatives: One-on-one meetings, Online, Flipped classroom

Welcome to the flipped classroom

What on earth is a flipped classroom?

In our case…

You prepare the class beforehand

You present to the class what you learned (usually related to

progress in your project)

I take the mic for a little while

You work on the projects the rest of the class.

Who are you?• Match the firm to what they (say they) do, fill the form.

• The first 5 students to complete the form correctly, get extra points.

• You have 10 minutes. Go, go, go!

Making sure we speak the same

language• Basic concepts and definitions.

Entrepreneurship

“A management and leadership style that involves

pursuing opportunity without regard to the resources

currently controlled.”

(Adapted from Stanford University’s Technology Entrepreneurship course, 2015)

A process.

Involves leadership, creativity, risk, a vision.

Obtaining, generating, managing some resources

Does not necessarily imply creating a new organization.

Entrepreneurship

“A management and leadership style that involves

pursuing opportunity without regard to the resources

currently controlled.”

(Adapted from Stanford University’s Technology Entrepreneurship course, 2015)

A process.

Involves leadership, creativity, risk, a vision.

Obtaining, generating, managing some resources

Does not necessarily imply creating a new organization.

Then, who or what is an

entrepreneur?• Do you know any?

• Go ahead, shoot!

• Do they have any common traits?

Entrepreneurs are nothing special

Someone who notices an opportunity and follows it

through

The difference? Tools, know-how, attitudes.

A good nose?

Develop technical skills

Monitor the market

Know your shit and keep your eyes open!

Can this be learned?

You bet!Let’s start with the basics…

Opportunity

A situation where I can use my knowledge, abilities, or resources, to solve

someone’s problem.

How do opportunities arise?

Good timing

Technical or technological advantage

They can be detected --- Deep knowledge of the market

Consumers

Competition

Global trends

Luck

An opportunity well identified and captured through value leads to many long-

term interactions

Innovation

Cutting-edge technology?

The Cloud?

Groundbreaking discoveries?

New Paradigms?

The Next Wave?

The Internet of Things?

Killer Apps?

The Frontier?

Big Data?

Block chain?

NO!

Disruption

IdeaInvention

Synergy

Value

App

Big Data

Quality Block chain

Millennialls

Content

Social Media

Lean

Empower

Start-upSpin-off

Positioning

Technology

Empty buzzwords

are banned!!!

Innovation

Innovation

Kairos

“a passing instant when an opening appears which must be driven

through with force if success is to be achieved.”

(From E. C. White, Kaironomia: on the will to invent, 1987)

the moment in which an arrow may be fired with sufficient force

to penetrate a target.

(from Wikipedia)

Doing the right thing at the right time.

Innovation

Then…

Is an INVENTION and innovation?

Only if it satisfies a specific need.

And what about an IDEA?

Only if it is translated to a good or service.

Is something UNIQUE and NOVEL an innovation?

Only if it can be replicated economically to cater a determined market.

Only if they generate VALUE for the society!

Innovation ≠ Creativity

What makes them different?

Focus on value

Economic replicability

“Materiality”

Creativity is about bold, unconventional, big ideas

Innovation feeds from creativity but seeks a sustainable way to

introduce it into the system

Innovation = Creativity × Execution

Entrepreneurship ≠ Innovation

A burger stand owner next to a university is an

entrepreneur.

Is he an innovator?

Can he become one? How?

A genetist coding the genome of fruit flies is an innovator

Is he an entrepreneur?

Can he become one? How?

Yet…

Innovation makes no sense without entrepreneurship

Pipe dreams, far-fetched dellusions, wet paper…

Entrepreneurship without innovation is doomed

Competitive advantage disappears…

… Hence the name of this course.

Entrepreneurship and Innovation

Innovation is also about opportunities

Emphasis on finding new ways to solve old problems.

Innovation is knowledge intensive

But just because that’s how you find an opportunity

Know your customers, market, rivals, very well

They are entwined

Competitive advantage.

Why can this hot dog stand exist?

What makes it unique? Innovative?

Entrepreneurship and Innovation

The process of transforming an idea into a good or service

that creates value in a sustainable way.

Innovative Entrepreneurship?

Entrepreneurial Innovation?

Revolutionary changes

New ways to

understand and

address the problems

of the world.

Evolutionary processes

Cheaper,

Faster,

Better…

Innovation in businesses arises from

Two forms of generating value.

Value

How much am I willing to pay for it to ease my pain.

Solve a problem

Find a more efficient way to allocate resources

Show me a necessity I was unaware of

Give something old a new use

Transform reality

Homework

Find examples for each of those 5

At least one or more service/product for each type

Individually

Be original!

Food for thought:

Does novelty guarantee value is being created?

Yes/No, justify your position with arguments and examples. A short essay.

Be prepared to talk, present, and debate.

You will submit via email or on paper before the class starts.

How can we generate value in a

sustained and sustainable way?

Through business model innovation

What is a business model?

What a firm does, who it sells to and how the numbers

work so that it is a viable venture.

What does “business model innovation”

mean?

That you are innovating in at least two of a business model

components at the same time

Who buys and where (Customer + Channel = BMI)

What you sell and how it is sold (Product + Channel = BMI)

What you sell and how it is built/created (Product + Process = BMI)

The type of innovation with the highest and longest impact

What is a patent?

A legal instrument

To incentivize research investment

It provides the holder exclusivity rights over the comercial

explotation of the invention for a limited time.

What is a start-up?

Not a bar (almost)

Any new venture not funded through

debt.

Business Plan

The be-all, end-all path to fame, fortune, success, and

happiness?

Sorry to disappoint:

A detailed, complete, step-by-step outline of how to seize a

particular opportunity.

The resources and activities necessary to transform an idea into

reality.

The business plan essentially answers one big question you

already know…

Business Plan vs. Business Model

A business plan is not a recipe

Jazz not baking

A snapshot of your business model, usually before you start

A business model is a tried-and-true strategy to capitalize on an

opportunity

Franchise, Freemium, PWYW, Leasing, Direct sales, etc.

A business plan is time, project, and context-specific

You can adopt/follow a business model

How do we sell this?• Describe (in two minutes or less) what IT is.

• How do you plan to build IT?

• Who will buy IT and how much would they pay for IT. How do you reach them?

• What about the money?

• When can you make it happen?

Value Proposition

Resources

Customers

Funding

Validation

You now know all the

theory you need for

this class!!!Time to get real:

1. Start searching for ideas, these tools will help you

2. Talk to other people, you need a team ASAP.

Step 1

Find the most useless object/good/product you have at home

Individually prepare three cards

Card 1: A picture or sketch to show us what it is.

Card 2: Write down in a short phrase what it does.

Card 3: Write down why you bought it.

You will submit the three cards at the beginning of the class.

Step 1 – Two examples

An ornamental,

multi-colored lava

lamp.

It looks cool.

A plastic instrument

to squash insects.

I was afraid of Zika

virus.

You have four homeworks

Tell me why should I invest in you?

A 1 minute video shot with your phone. (No need to show it to me but do keep it).

Those labelled as “Homework”

Slide 50

Those labelled as “Step X”

Slides 62 & 63

The “flipped classroom” material.

The two short videos to watch: An orgy of innovation and Everything is a remix.

Submit them via email before next Monday (22/07), keep an eye on your

email for the next meeting (03/08) and the lectures.

“Are you crazy?”

What’s in for me? What are the

benefits?

In learning investment terms: 20 – 30 million COP

You can actually take it “really seriously”

Stakes are different/low

A very rich safety network

Thanks for your attention!Don’t forget the homework and see you next class.